In the context of intergenerational inequality, ‘regression toward the mean’ is captured by which of the following? Group of answer choicesthe tendency for inequality to be wider as a country experiences economic growththe tendency for the 90–50 wage gap to approach the 50–10 wage gap as a country experiences economic growththe tendency for countries to diverge in their inequalitthe tendency for inequality across families to stay unchanged over timethe tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population
Question
In the context of intergenerational inequality, ‘regression toward the mean’ is captured by which of the following? Group of answer choicesthe tendency for inequality to be wider as a country experiences economic growththe tendency for the 90–50 wage gap to approach the 50–10 wage gap as a country experiences economic growththe tendency for countries to diverge in their inequalitthe tendency for inequality across families to stay unchanged over timethe tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population
Solution
In the context of intergenerational inequality, 'regression toward the mean' is captured by "the tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population".
Here's why:
'Regression toward the mean' is a statistical concept that refers to the phenomenon where if a variable is extreme on its first measurement, it will tend to be closer to the average on its second measurement—and, paradoxically, if it is extreme on its second measurement, it will tend to have been closer to the average on its first.
In the context of intergenerational inequality, this concept can be applied to the income differences across families. If a family's income is extremely high or low compared to the mean income of the population in one generation, it will tend to be closer to the mean in the next generation. Conversely, if a family's income is close to the mean in one generation, it could be higher or lower in the next generation, but still closer to the mean than families with extreme incomes.
Therefore, over time, the income differences across families tend to get smaller as they move toward the mean income of the population, capturing the concept of 'regression toward the mean'.
Similar Questions
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What is meant by: Income Inequality
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